The Contributions from Firm Entry, Exit and Continuation to Labour Productivity Growth in New Zealand
AbstractThis paper evaluates the contributions from firm entry, exit and continuation to labour productivity growth in New Zealand over the period 1995 to 2003. Decomposition techniques developed by Griliches and Regev (1995) and by Foster, Haltiwanger and Krizan (1998) are employed. Results suggest significant heterogeneity across both industries and firms. Most entering firms’ initial level of labour productivity is below the industry average but grows rapidly thereafter. Continuing firms generally add to industry labour productivity growth. On average exiting firms experience stagnant or declining labour productivity in the years leading up to their death, and when they eventually die most have below average labour productivity compared to their industry. This pattern persists even at a highly disaggregated industry level and indicates that firm turnover has positively contributed to labour productivity growth in New Zealand.
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Bibliographic InfoPaper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 05/01.
Length: 34 pages
Date of creation: Apr 2005
Date of revision:
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More information through EDIRC
Firm Performance; Entry; Exit; Turnover; Mobility; Labour Productivity; New Zealand;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-03 (All new papers)
- NEP-ENT-2005-04-03 (Entrepreneurship)
- NEP-MIC-2005-04-03 (Microeconomics)
- NEP-TID-2005-04-03 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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